In a freshly published personal account, named Ithaki, the ex- prime minister Tsipras does not hold back as he revisits that turbulent period during Greece's debt drama.
A Controversial Choice
In Tsipras's version, Tsipras selected the maverick academic Varoufakis to be his treasury head largely due to the latter's global profile along with his very persuasive skills as a communicator.
“He was, truthfully, more like a star and less of an economic expert,” recalled Tsipras.
Clashing Agendas
The former leader suggests how his finance chief had a personal motives which included promoting his publications and testing out his own game theories using Greece rather than truly fighting for its financial survival.
Tsipras explained that the negotiations to prevent insolvency became “not only a way to secure improved terms for the country. They were a test, a monumental opportunity to demonstrate the truth of his economic theories.”
High-Stakes Negotiations
Amid rollercoaster discussions, Greece came dangerously on the brink of leaving the eurozone.
At stake was both Greece's destiny but also those punishing austerity policies demanded in return for financial aid by foreign lenders.
Unsuccessful Options
Attempts to secure funds elsewhere, including an urgent appeal to Russia to purchase Greek bonds, went unanswered.
Assisting Greece was equivalent to tossing cash into the garbage, Putin is reputed to have informed Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, those punitive conditions were put to a public vote, a move that threw the EU into deeper existential crisis.
Even though the vote was won resoundingly by voters who opposed the cuts, Tsipras was forced to reject its outcome and agree to a rescue deal with creditors that proved to be tougher.
Breaking Point
Tsipras claimed that he started questioning his finance minister relatively soon.
“He was the public image of negotiation, the figure who drew media attention, who graced the front pages of magazines globally … he gave the impression he relished his new role.”
When Varoufakis proposed a contingency plan that included creating a parallel currency as well as issuing coupons to retirees, Tsipras knew it was game over questioning him: “Can you be serious?”
Enduring Rebuke
Within the book, Tsipras concludes that Varoufakis had proved himself “unfit for an agreement demanding intricate and delicate handling.”
Tsipras further wrote that Varoufakis's confrontational approach made him increasingly isolated among peers, put Greece at risk, while assisted hardliners who were pushing for Grexit.
The account of history has been met with fury and stunned disbelief among certain groups, while Varoufakis has so far maintained a deafening silence on the matter.
